Three weeks ago, CCTV reported the drug kickback scandals in six 3rd class public hospitals. All the doctors involved were penalized. This CCTV report has continued to be a hot topic in multiple WeChat public accounts that I monitor to gauge for our clients how the on-the-ground reality for pharmaceutical companies is changing. In order to assess the real reaction by physicians towards this CCTV reporting, I had a few conversations with some of my old doctor friends from 2nd and 3rd level hospitals in different cities. Without exception from … [Read more...] about Are Reforms Focused on Pharma Kickbacks in China, the Last Straw to Push Doctors to Leave?
On Dec 24th, 2016, physicians from six 3rd class public hospitals in Shanghai and Hunan were filmed by CCTV taking bribes from pharmaceutical sales representatives. It was said that the CCTV journalist spent 8 months collecting the facts and found that nearly 40% of the drug prices paid by consumers within the hospital was kickbacked to the physician. The summary of the report did not mince words: ”Over-priced drugs damage the core value of public hospitals on serving for public ... [the] profit-driven mechanism in public hospitals hurts the … [Read more...] about Drug Kickbacks, the Incurable Disease of Public Hospitals in China
Over the last six weeks, my team in China has been working on a research project about foreign direct investment (FDI) in China's hospital market. Before talking specifically about foreign invested hospital projects, the key findings on the general private hospital market are a good beginning to help our readers get a good foundation as to the picture of China’s private hospital market.2015 marked the first time that the number of private hospitals accounted for over half of the whole market (53%). However, the amount of services delivered … [Read more...] about Let’s Talk About China’s Private Hospital Market
Recently, I have had multiple conversation with managers from tertiary hospitals, specifically those formally described by the government as “institutions deliver general and comprehensive care at the municipal, provincial, or national level”, to explore their perspectives around the recent comments by Mr. Duan Tao. Each of the conversations quickly focused around the booming competition from private hospitals. On one hand, all of them agree the private sector of China’s hospital market will continue to grow. On the other hand, I didn’t hear as … [Read more...] about China’s Tertiary Hospital Leaders Are Anxious
As I presented in my first column on the topic, the Anhui government’s efforts to apply different payment methods in an attempt to control the province's healthcare expenditure without reducing much of the quality of care have been something our firm has been watching and working in since 2012. One government officer I recently spoke with noted that in the past three years, the new model “has met our expectations on medical cost-containment”, “has provided a bigger medical benefit umbrella for the low-income population in both urban and rural … [Read more...] about Anhui Model, Will It Be the Future of China’s Health Care Provider Payment Reform? Part II
China’s health care provider payment system, which is called the Yibao payment method, has been widely recognized as one of the crucial factors that will continue to play a critical role in China's healthcare reform. The importance of the Yibao payment reform was again emphasized by the central government in 2016, which stated that it was “the key to decide the success of healthcare reform”. However, in the country like China where public medical insurance schemes dominate the market, the complexity and difficulty of the reforms, and the ways … [Read more...] about Anhui Model: Will It Be the Future of China’s Health Care Provider Payment Reform? Part 1